Officially founded on December 27, 1945, when the 29 participating countries signed their statutes at the Bretton Woods conference, the IMF was to be the rules and the main instrument of international public administration. The Fund began its financial operations on March 1, 1947. Any exchange rate change of more than 10% is required for IMF approval. She advised countries on policies that influence the monetary system and lent reserve currencies to countries that had incurred balance-of-payments debts. … [D]i caximate cause of the world depression was a strukturell fehlerhaft and poorly managed international gold standard. … For many reasons, including the Federal Reserve`s desire to stem the U.S. stock market boom, monetary policy in several major countries became contractualized in the late 1920s, a contraction that was transmitted worldwide by the gold standard. What began to be a lenient deflationary process began to take off when the banking and monetary crises of 1931 triggered an international “battle for gold”. The sterilization of gold inflows by surplus countries [the United States and France], the substitution of gold by foreign exchange reserves and runs to commercial banks has led to an increase in the coverage of silver gold and, consequently, a sharp involuntary decrease in domestic shipments. Monetary contractions, on the other hand, have been strongly linked to lower prices, output and employment. Effective international cooperation could, in principle, have allowed for the expansion of money on a global scale despite restrictions on the gold standard, but disputes over the reparations and war debts of the First World War and the insularity and inexperience of the Federal Reserve prevented this result.
As a result, some countries were only able to escape the deflationary whirlwind by unilaterally abandoning the gold standard and restoring national monetary stability, a process that stretched in a stagnant and uncoordinated manner until France and the other gold bloc countries finally left gold in 1936. – Great Depression, B. Bernanke In the 19th and early 20th centuries, gold played a key role in international financial transactions. The gold standard has been used to support currencies; The international value of the currency has been determined by its stable relationship with gold; Gold has been used to settle international accounts. The gold standard maintained fixed exchange rates, which were considered desirable, as they reduced the risk associated with trade with other countries.